Starbucks glass art in a store in Tokyo.
Jakub Bolzycki | Noor Photos | Getty Images
Starbucks It is expected to release third-quarter earnings after the bell on Tuesday.
Here are the expectations of Wall Street analysts polled by London Stock Exchange Group (LSEG):
- Earnings per share: 93 cents expected
- Revenue: Estimated $9.24 billion
Starbucks shares have fallen about 21% this year as consumers worry about demand for its coffee. The company’s U.S. same-store sales have declined over the past two quarters as fewer occasional customers visited. Sales in China, its second-largest market, have struggled as customers have turned to locally owned, cheaper rivals such as Luckin Coffee.
The company also slashed its forecast for last quarter and doesn’t expect its sluggish sales to improve for several more quarters. Starbucks expects revenue growth in fiscal 2024 to reach a low-single-digit percentage, and earnings per share growth to remain flat to a low-single-digit percentage.
Pressure is mounting on Chief Executive Laxman Narasimhan. After last quarter’s rough report, three-time former CEO Howard Schultz, handpicked by Narasimhan, commented on LinkedIn that the company needed to improve its stores and mobile ordering experience. Although Schultz no longer holds an official role at the company, he still owns about 2% of the company’s shares.
Activist hedge fund Elliott Management also has a stake in the company.
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